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US - The results of the latest USDA ‘Cold Storage’ report probably did not get as much attention as the feedlot survey but we think it perfectly encapsulates the current state of the US meat industry, write Steve Meyer and Len Steiner.
Supplies are growing and will likely get larger and prices have had to adjust significantly in order to clear the market. More product is ending up in cold storage, which tends to cap future prices.
Seasonally pork and chicken production increase in the second half of the year and thus even more meat is likely to accumulate in cold storage ahead of the year end holidays.
Total beef in cold storage at the end of June was 451.2 million pounds, 4.9 per cent lower than a year ago but 1.8 per cent higher than the five year average. While beef supplies are lower compared to last year supplies increased 1.2 per cent compared to the previous month.
Generally stocks decline into the fall and the increase in inventories could imply that some of the increase in beef supplies we have seen recently is ending up in cold storage rather than flowing through to the consumer.
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